FINA Committee Report
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On June 21, 2007, the House of Commons Standing Committee on Finance invited Canadians to participate in its annual federal pre-budget consultations. In selecting the consultations theme of the tax system that the country needs for a prosperous future, the Committee recognized that, in an increasingly global world characterized by ongoing and rapid change, one responsibility of governments is to ensure the existence of a system of taxes, fees and other charges that meets the needs of the country, its residents and its businesses. A consequence of this responsibility is the requirement to design a tax system that results in the collection of the revenues needed to fund public goods and services, and that ensures the prosperity and productivity of Canadian residents and businesses.
Between June 21, 2007 and the beginning of the Committee’s pre-budget hearings, there was a marked rise in the relative value of the Canadian dollar, accompanied by some volatility from day-to-day. Since residents and businesses have been affected — some positively, others negatively — by this relative appreciation, on November 19, 2007 we indicated that the focus of the pre-budget consultations would also be the impact of the appreciation in the relative value of the Canadian dollar.
In this report, the Committee summarizes the main points made by the witnesses on the themes of the tax system that Canada needs for a prosperous future and the effects of the appreciation in the relative value of the nation’s currency. As well, we make recommendations about the changes to taxes, fees and other charges that we believe are needed to ensure the prosperous future that residents and businesses want and deserve.
Each year, the Committee undertakes pre-budget consultations in a different economic, fiscal and monetary context. The context for the current consultations is described in Chapter 1, while Chapter 2 provides a general discussion of what witnesses told us about the principles that should be considered when federal decisions about taxes, fees and other charges are made. Chapter 3 indicates changes to federal taxes, fees and other charges desired by the witnesses in respect of Canada’s people, while Chapter 4 identifies the changes they want in relation to Canadian businesses. Chapter 5 presents the changes to taxes, fees and other charges proposed by witnesses with respect to our communities. Finally, Appendix A contains the non-tax-related recommendations made by us as well as proposals submitted to us by mid-August 2007 that are unrelated to federal taxes, fees and other charges, while Appendix B presents pre-budget proposals submitted to us after that date.